Anniversary Rating Date Endorsement - described, defined, explained

A Workers Compensation Term Definition

An endorsement to a workers compensation policy that advises the insured that the premium, rates and experience rating modification factor may change on the anniversary rating date.

This endorsement was developed by the National Council on Compensation Insurance, NCCI and is used as form WC 00 04 02. Its basic purpose is to advise the workers compensation policyholder that their rates, experience modification factor and premiums are subject to being adjusted or changed at the renewal date or anniversary rating date, ARD. A little known fact, all rules, classifications and rates are applied at the anniversary rating date, not necessarily at the renewal date.

The allowed use and application of this endorsement is lined out in the NCCI Basic Manual. Simply stated this workers comp endorsement is added to a policy only when the normal anniversary rating date is different than the policy effective date. Whether changed due to a cancellation and rewrite or for some other reason such as cancel for non pay, you should only find this attached to a policy when these dates are different.

So keep in mind, the anniversary rating date endorsement is only attached to policies when the rating date is different from the renewal date. As an endorsement it modifies the policy terms and allows the insurance company to use the rates that were effective at the anniversary rating date rather than those effective at the renewal date. This endorsement is removed when the renewal date and anniversary date are again the same.